AMRI raises 2012 guidance
Contract drug research and manufacturing organization AMRI (NASDAQ: AMRI) has reported financial and operating results for the second quarter and raised its full year earnings guidance.
Chief financial officer Mark Frost said AMRI expects contract revenue in the third quarter to range from $43-million to $46-million. For all of 2012, AMRI continues to expect contract revenue to range from $176-million to $186-million, an increase of up to 10% year-over-year.
“We are forecasting third quarter royalties of $6-million to $7-million and have narrowed our full year 2012 range to $32-million to $34-million,” he said. “We are raising again our contract gross margin estimate for the year to range from 8% to 11%, but continue to expect volatility between the quarters related to sales mix.”
Research and development expense is expected to be $1-million for the year and selling, general, and administrative expense will be reduced by approximately 3% to 5%, compared with the prior year.
“Reflecting the volatility between quarters, our adjusted earnings per diluted share for quarter three is expected to be a loss of 4 cents-to-zero, but we are raising our full year adjusted earnings per diluted share estimate to range from 10 cents to 16 cents,” he added.
AMRI CEO Thomas D’Ambra said the global pharmaceutical and biotechnology industry continues to seek innovative partners that can better balance risk, enhance flexibility and deliver business models tailored to their unique needs.
“SMARTSOURCING, as the cornerstone of AMRI’s business model, meets these needs head on by leveraging AMRI’s range of global capabilities and technologies, providing real choices for our customer without compromising on expectations, timelines or quality,” he said.
With anticipated growth in global spending on pharmaceutical products resulting from growth in emerging markets, global launches of new molecular entities and the focus on increased access to pharmaceuticals globally, “we believe SMARTSOURCING will drive increased demand for our range of services in the future to help clients effectively address these market trends,” he added.